In a major development, the Modi government has proposed removing the existing 12% and 28% slabs under the Goods and Services Tax (GST) structure and retaining only the 5% and 18% categories.
This would mark a dramatic shift from existing 4-slab to a 2-slab structure and simplify the taxation process.
According to a report by NDTV Profit, the Modi government is planning to move 99% of products (which are currently being charged 12% GST) to the 5% category.
Finance Ministry unveils blueprint for GST 2.0, moving to a two-slab structure with simpler, stable, and transparent tax rules.
— NDTV Profit (@NDTVProfitIndia) August 15, 2025
Reforms aim to cut compliance burdens, resolve disputes, and boost ease of doing business.@Shrimichoudhary with details⬇️ pic.twitter.com/Gpqpk8YBFF
Similarly, most goods currently taxed at 28% will be charged 18% GST henceforth.
A source told NDTV Profit, “The Centre is looking at all ongoing issues holistically and will propose a comprehensive package in the next GST Council meeting.”
Earlier on Friday (15th August), Prime Minister Narendra Modi announced the implementation of new-generation reforms in the GST system before Diwali.
